This excerpt taken from the AACC 8-K filed Nov 2, 2009.
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The Company invested $79.1 million to purchase charged-off consumer debt portfolios with a face value of $3.1 billion, for a blended rate of 2.57% during the first nine months of 2009, compared to $122.3 million with a face value of $3.2 billion, for a blended rate of 3.85% in the same period of 2008. All purchase data is adjusted for buybacks.
This excerpt taken from the AACC 8-K filed Jul 30, 2009.
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During the second quarter of 2009, the Company invested $20.0 million to purchase charged-off consumer debt portfolios with a face value of $727.9 million, for a blended rate of 2.74% of face value. This compares to the prior-year second quarter, when the Company invested $64.8 million to purchase consumer debt portfolios with a face value of $1.9 billion, representing a blended rate of 3.38% of face value. The Company invested $42.0 million to purchase charged-off consumer debt portfolios with a face value of $1.5 billion, for a blended rate of 2.85% during the first six months of 2009, compared to $86.7 million with a face value of $2.5 billion, for a blended rate of 3.53% in the same period of 2008. All purchase data is adjusted for buybacks.
Rion Needs, President and CEO, commented: The collections environment continues to be challenging in the current economic climate. As unemployment continues to increase we are seeing a negative impact on our liquidation rates, especially in the older vintages where there is decreased collection leverage due to the age of the accounts. However, we believe we will have strong returns on our investments in paper purchased in recent quarters because of our stated strategy of carefully controlling our levels of purchasing in order to save dry powder for the second half of 2009 and full year 2010, which has allowed us to be selective in the portfolios we have acquired.
Needs continued, We continue to build increased levels of operational sophistication and data analysis into our daily activities that will serve to maximize collections on our portfolios over the long run. We are particularly focused on our call centers, where we are aggressively increasing our capacity by expanding our collection account representative headcount to achieve better penetration of our inventory. We expect a net increase in collection account representative headcount of 20% by year end and are ahead of plan. We continue to enhance the segmentation of our accounts in order to focus our efforts on those most likely to liquidate, as well as complete our system conversion that will give our workforce the tools they need to maximize every collection opportunity. We believe these efforts will increase our liquidation rates going forward.
In addition to lower cash collections in the quarter, the Company reported lower operating expenses compared to the prior year. Total operating expenses in the quarter were reduced 9.3% to $45.1 million, from $49.7 million in the second quarter of 2008. For the 2009 second quarter, the Company reported operating expenses of 51.6% of cash collections, down from 52.2% of cash collections in the prior year quarter.
Mark Redman, Senior Vice President and CFO of Asset Acceptance Capital Corp. commented: We have continued to aggressively manage our cost structure in this difficult collections environment as evidenced by our 51.6% cost to collect ratio during the second quarter. Additionally, as a result of reducing our purchasing activity during the second quarter we paid down the revolving line of credit balance to zero and built our cash position, which stood at $12.9 million at the end of June. We are prepared to increase our level of purchasing in the second half of the year to capitalize on the growing supply of charge-offs resulting from the downturn in the economy.
Asset Acceptance Second Quarter 2009 Results
This excerpt taken from the AACC 8-K filed Apr 30, 2009.
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Mark Redman, Senior Vice President and CFO of Asset Acceptance Capital Corp. commented: As we signaled last quarter, we carefully controlled our levels of purchasing in the first quarter and expect to do so again in the second quarter in order to free up capital to purchase at what we expect will be more advantageous pricing in the second half of 2009 and early 2010. This strategy allowed us to generate excess cash during the quarter, which we used to pay down our outstanding debt by approximately $19.5 million.
Needs concluded: During the first quarter we prudently managed our business with an eye toward what we believe will be the inevitable rebound in industry conditions as the economy turns higher. Having said that, the pricing environment has continued to decline during the quarter and we were able to make investments at lower average pricing levels, which reflect a concurrent decline in liquidation rates. However, our more than 45 years of experience reminds us that collecting on receivables at this stage of delinquency is not a sprint, but more like a marathon. We believe that the actions weve taken will generate attractive returns over the long term.
Asset Acceptance First Quarter 2009 Results
This excerpt taken from the AACC 8-K filed Feb 19, 2009.
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